Management & Leadership

Japan’s leaders stubbornly embrace status quo

29 September 2021

Fumio Kishida is set to replace Yoshihide Suga as prime minister after securing leadership of the ruling Liberal Democratic Party. His conservative fiscal tendencies make him an unpopular choice for investors. It is likely a setback for hopes of economic and market momentum.

Morgan Stanley’s Asia shift signals new China era

28 September 2021

Long-time regional co-CEO and China boss Wei Christianson is retiring, leaving Gokul Laroia in sole charge. Few combine her banking nous and network. The Wall Street firm will now rely on unit heads for the mainland, suggesting a maturing market as well as one growing in clout.

Capital Calls: U.S. debt, Hollywood, Blue Prism

28 September 2021

Concise views on global finance: Republicans have blocked additional federal borrowing, bringing a default closer; talent agencies CAA, ICM, and Endeavor take different strategic directions; private equity group Vista seems to be getting UK software group Blue Prism cheaply.

BP’s hard baptism goes with transition territory

20 September 2021

The UK oil major has sold choice assets to control debt since embarking on its green pivot a year ago, and CEO Bernard Looney just replaced the boss of his key renewables arm. If he needs a boost, Danish wind star Orsted looked equally bumpy at a similar stage of its evolution.

World Bank has a shareholder-engagement problem

17 September 2021

Leaders, including now-IMF head Kristalina Georgieva, pressured staff to boost China’s ease of doing business ranking, a probe said. This isn’t realpolitik mitigating inherent U.S. bias. Such tactics detract from the bank’s work, damage credibility and impair its future role.

Buyout sweeteners are symptom of limp boards

14 September 2021

Hellman & Friedman offered 18% more for Zooplus a month after the German retailer backed a $3.5 bln takeover. Blackstone and CD&R also paid more for listed targets than initially intended. Recommending a bid can flush out rival suitors. But boards should be negotiating harder.

Generali needs stable owners more than a new boss

14 September 2021

Under Philippe Donnet, the $33 bln Italian insurer’s stock price has kept up with Allianz and bested Axa, although he failed to clinch big acquisitions. Grumbling old Italian billionaires in its shareholder roster, fighting with rival owner Mediobanca, are its bigger weakness.

Amplifon within earshot of Luxottica-like success

13 September 2021

The Italian listening-device maker is positioning itself to do for the hard of hearing what the $89 bln eyewear giant did for the sight-impaired. It’s just one-eighth the size but has ageing societies and a new generation of customers banging their eardrums to look forward to.

Goldman smartly snaps up McKinsey cast-off

9 September 2021

The Wall Street firm hired Kevin Sneader, the consultant’s former managing partner, as co-head in Asia. Installing the person who agreed a $573 mln opioid settlement looks odd for a bank still smarting from the Malaysian 1MDB scandal. In fact, it shows an openness to fresh ideas.

Morrisons has a nuclear way to keep suitors honest

9 September 2021

The battle for the UK grocery chain looks set to end in an auction. The big danger is that Fortress or CD&R bid too much and then break pledges in areas like employee rights. The board has a way to make these promises legally binding, but the risk is both bidders walk away.

China’s Ke would drag heavy baggage to Hong Kong

9 September 2021

The New York-traded online property broker may add another stock listing. Ke is a prime target in Beijing's tech and real estate crackdown, and its founder’s death left a governance mess. Even with shares 70% off their peak, there's plenty to dissuade investors from moving in.

Today’s Theranos would have gone public via a SPAC

8 September 2021

Elizabeth Holmes’ blood-testing outfit touted novel technology and big future sales. Holmes, on trial, blurred lines between marketing and fraud. Trevor Milton, founder of electric-truck firm Nikola, now faces similar charges. A key difference: Nikola is already publicly traded.

UK’s Smiths faces tough physio after M&A surgery

8 September 2021

The $8 bln engineer is flogging its health unit to ICU Medical for $2.4 bln, three years after walking away from the same bidder. The sale is a win for new boss Paul Keel. But for Smiths to warrant a jazzier rating, he will have to work similar magic on languishing margins.

Capital Calls: AMC, German pet retailer

8 September 2021

Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.

Morgan Stanley boldly sidesteps record India IPO

8 September 2021

The Wall Street firm didn’t pitch for the $14 bln debut of state-owned insurer LIC. Sure, fees are painfully low. But the deal brings bragging rights and government brownie points and looks more straightforward than, say, the Saudi Aramco sale. Yet there’s logic to the move.

D.Telekom finds good route to poor destination

7 September 2021

The 85 bln euro German carrier is upping its stake in T-Mobile US by 5% to near-majority ownership. Doing so via a share swap with Japan’s SoftBank is better than handing over $8 bln in cash. Yet it exacerbates the problem of DT investors valuing U.S. assets at a discount.

Capital Calls: JD.com shakeup

6 September 2021

Concise views on global finance: New appointments at the $126 billion Chinese e-commerce giant hint at succession planning.

VW-style tech hype calls for defensive driving

6 September 2021

CEO Herbert Diess says the “gamechanger” for his industry will be software and autonomous cars, with the former a $1.4 trln global market by 2030. Such a Panglossian take relies on fleets of robo-taxis and driver-downloads galore, plus manoeuvring past tech leaders like Alphabet.

Rio Tinto can afford to go halves in Mongolia

3 September 2021

The miner’s $14 bln Oyu Tolgoi scheme is over budget and debt-laden, depriving its government partner of a return. Restructuring so only 50% of the project’s free cash pays down debt could restore dividends and win Mongolia over. High copper prices give Rio scope to act.

Capital Calls: Geely’s employee stock awards

1 September 2021

Concise views on global finance: The Chinese automaker shifts the idea of granting workers share options into gear.